OPS canvasses cheap funds for business growth
This, according to the Organised Private Sector (OPS), particularly the Nigerian Employers’ Consultative Association (NECA), will enable the private sector to create jobs and wealth for the teeming youths, and provide opportunities for government to generate income.
The Director-General of NECA, Timothy Olawale, said the private sector recognises the multifaceted challenges facing government, and commended its effort at meeting the yearning of the OPS.
However, he voiced his concern at the persistent crowding out of the real sector of the economy from accessing capital at reasonable cost due to increased government borrowing in the domestic market.
He insisted that the private sector is constantly crowded out of access to capital at reasonable cost due to the volume of government’s borrowing from the domestic market.
He noted that the assumptions of the 2019 budget showed that government might borrow to finance the deficit in the budget.
This is even as the Debt Management Office (DMO), had earlier reported that the Federal Government’s domestic debt profit rose to N15.814 trillion in September 2018, from N15.629 trillion in June 2018 (1.19% increase).
Meanwhile, the 2019 budget projects about N1.86 trillion deficits, predicated on N7 trillion revenues, a development, he said,
Is threatening notwithstanding the upsurge in the price of crude, and will leave government with limited options than to borrow, thereby further shrinking available credit to the private sector.
Olawale urged Nigeria to accept its limitations as an oil-dependent rather than an oil-rich nation that has refused to understand the un-sustainability of the dependence on oil.
He said now is the time to give deliberate attention to the engine of development – the private sector, and support it to fulfil its task of wealth creation.
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